Shulsky Properties pays $12M for mixed-use in Flatiron District, last sold for $25M

Shulsky Properties through the entity Shulfam LLC paid $12 million to ASB Capital Management through the entity Broadway Investors, LLC for the mixed-use building (S9) at 862 Broadway in Flatiron District, Manhattan. The expected use is cash flowing. ASB bought the property on June 21, 2016, for $24.97 million.
The deal closed on August 13, 2024 and was recorded on August 15, 2024. The property has 4,780 square feet of built space and 11,857 square feet of additional air rights for a total buildable of 16,630 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $2,510 and the price per buildable square foot is $721 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for ASB Capital Management was Matthew Brodie Ruland. The signatory for Shulsky Properties was Larry Ellenberg. The contract date was July 3, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Shulsky Properties had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller ASB Capital Management had not purchased any other properties and sold three properties in one transaction for a total of $5 million over the same time period.

The property

The mixed-use building with 2 residential units in Flatiron District has 4,780 square feet of built space and 11,857 square feet of additional air rights for a total buildable of 16,630 square feet according to a PincusCo analysis of city data. The parcel has frontage of 26 feet and is 74 feet deep with a total lot size of 1,663 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Ladies’ Mile Historic District. The city-designated market value for the property in 2022 is $4.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $2,250 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 5, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Flatiron District, The majority, or 71 percent of the 23.2 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Flatiron District has 1.2 times the average sales volume among other neighborhoods with $307.9 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, Flatiron District has 2.6 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Manhattan. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 12 of the 31 commercial properties representing 359,249 square feet of the 871,545 square feet. The largest owner is Related Companies, followed by Eretz Group and then Trans World Equities.
On the tax block, there was one new building construction project filed totaling 38,263 square feet. It is a 38,263 square-foot business (B) building submitted by Ken Rosenblum with plans filed April 27, 2020 and it has not been permitted yet.

The majority, or 47 percent of the 871,545 square feet of built space are office buildings, with mixed-use buildings next occupying 34 percent of the space.

The seller

The PincusCo database currently indicates that Asb Capital Management owned at least three commercial properties with five residential units in New York City with 117,271 square feet and a city-determined market value of $48.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 63 percent of the 117,271 square feet of built space are retail properties, with office properties next occupying 37 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Shulsky Properties owned at least two commercial properties in New York City with 284,247 square feet and a city-determined market value of $93.7 million. (Market value is typically about 50% of actual value.) The portfolio has $42.7 million in debt, borrowed from Apple Bank for Savings. Within the portfolio, all identified are office properties. They are all located in Manhattan.

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